Australia's central bank will start investing in Chinese bonds -- an
"important" decision that marks yet another win for China's growing
international financial influence.
"This decision to invest in China is an important one," said Philip Lowe, deputy government of the Reserve Bank of Australia, BBC reported. "It reflects the broader economic relationship between China and Australia, and our increasing financial ties."
The bank will invest about 5 percent of its foreign currency reserves in government bonds from China, BBC reported. RBA currently holds just over $39 billion in foreign currency reserves.
Australia's announcement is significant in that it shows just how rapidly China's economy is making headway around the world. Australia's dollar is the third currency now to trade directly with China's yuan, BBC said.
Economic analysts say China is actively promoting the yuan as a viable alternative to the U.S. dollar in the global market.
(c)2013 The Washington Times (Washington, DC)
Distributed by MCT Information Services
Most Popular Stories
- Hernandez lawyer: Pats Records Dispute Resolved
- Congress Leaving Town as Deadlines Loom
- 4th Circuit Upholds Obamacare Subsidies
- Oregon Voters to Decide on Recreational Pot
- Oregon to Vote on Recreational Marijuana
- Jeter, Bauer Give Fox a Strong Week in TV Ratings
- Fiat, Renault Strike Deal on New Light Vehicle
- Senate, House Locking Horns on Border Funds
- A's Agree to 10-Year Lease to Stay in Oakland
- LinkedIn to Buy Ad Tech Company Bizo for $175 Million